When Apple started assembling iPhones in India, it was mostly due to pressure from the government, which requires companies to locally manufacture at least 30% of the products they sell in the country if they want to open single-brand retail stores. Apple products are currently sold only through third-party authorized resellers.

But the government has also expressed the hope the local manufacturing will reduce production costs and lead to lower prices. It finally agreed to tax concessions Apple had sought as part of the move toward local manufacturing, but did so only after production had begun.